Nuclear power is a low-carbon energy source that produces negligible carbon dioxide emissions during electricity generation. Nuclear power plants use nuclear fission to produce high temperatures that convert water into steam. The steam spins turbines that generate electricity. Nuclear reactors have the potential to provide large-scale, low-carbon baseload electricity without producing greenhouse gases. Currently, there are over 450 operational nuclear power reactors worldwide that supply about 10% of global electricity. The need to reduce dependence on fossil fuels and lower greenhouse gas emissions is driving increased interest in nuclear power globally. Several countries are planning to build new reactors or extending the life of existing ones as part of their strategy to transition to clean energy and meet climate goals.
The global Nuclear Power Market is estimated to be valued at US$ 399.09 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the nuclear power market is the focus on development of small modular reactors (SMRs). SMRs are smaller, simpler, and can be constructed modularly which reduces capital costs and construction schedules compared to large traditional nuclear power plants. Their small size makes SMRs suitable for supplying remote communities and industrial facilities. They are modular and factory-built which promotes standardization and automation in construction. Several companies are investing in SMR technology to make nuclear power more competitive. For instance, NuScale Power is developing an SMR design that is inherently safe and is projected to be commercially available by 2030.
Porter’s Analysis
Threat of new entrants: The nuclear power market requires huge capital investments for plant set up. Strict regulations and licensing requirement for nuclear plants act as barriers for new companies.
Bargaining power of buyers: Power utilities form the major buyers in this market. Switching costs are high for buyers as they depend on stable power supply.
Bargaining power of suppliers: Major equipment suppliers like nuclear reactors, turbines etc enjoy bargaining power due to specialized technical expertise and capabilities required.
Threat of new substitutes: Alternate sources of energy like solar, wind offer viable substitutes. However, nuclear energy provides reliable base load power.
Competitive rivalry: Major players compete on parameters of plant efficiency, operation & maintenance costs and technical capabilities. Sustained R&D helps companies gain competitive edge.
Key Takeaways
The Global Nuclear Power Market Demand is expected to witness high growth over the forecast period supported by increasing energy demand and focus on clean energy sources. The global Nuclear Power Market is estimated to be valued at US$ 399.09 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030.
Asia Pacific currently dominates the market and is expected to grow at the fastest rate led by countries like China, India. China has the largest number of reactors under construction globally and leads in terms of installed capacity. North America will also witness significant growth owing to capacity additions in the US. Several new projects are in planning and development stages in the US, Canada and Mexico. Established markets in Europe are expected to grow at a moderate pace with capacity addition focus in countries like UK, France and Russia.
Key players: Key players operating in the nuclear power market include 3A Composites GmbH, Multi-Pak USA, Inc., Laird Plastics, United Industries Group, Inc., Acrylitec Displays, Ray Chung Acrylic Enterprise Co., Ltd., Mitsubishi Chemical Corporation, Plaskolite, LLC, Lucite International, and Evonik Industries AG. Players compete on technical capabilities and focus on capacity expansion through new projects and strategic collaborations.
For more details on the report, Read- https://www.insightprobing.com/nuclear-power-market-demand-share-analysis/
